Test 1 macro economics
If the MPC= 0.8 and income rises by $5,000, what is MPS?
0.2
If the MPC = 0.8 and income rises by $5,000 ,what is increase in saving
1,000
If the stock of money is $250 million, velocity is 5, and the price level is 10, what is real output.
125 billion
The labor force contains 170,500 million people. The unemployment rate is 6%. Calculate the number of a) employed and b) unemploye
160,270; 10,230
The labor force contains 170,029 million people. The number of employed is 140,805 million. Calculate the unemployment rat
17.2
If the consumer price index (CPI) was 92 in 2016, 97 in 2017, 100 in 2018, and 102 in 2019, then the base year must be:
2018
The labor force contains 170,029 million people. The number of employed is 140,805 million. Calculate the number of unemploye
29,224
If the MPC = 0.8 and income rises by $5,000, what is the increase in consumption
4,000
If Mary's salary was $40,000 last year, and this year she receives a cost of living increase tied to the CPI, what will her salary be this year assuming the CPI has risen from 110 to 120
43,636
Bistro Belle Vie employs 2 waiters, each working 6 hours, to serve total of 60 tables. What is the per hour productivity of each waiter.
5 tables per hour
If economy's MPC is 0.8 and the MPM is 0.2, then an increase in government spending of 2,000 will increase income by
5,000
The labor force contains 170,500 million people. The population of 16 years and older is 244,300. Calculate the labor force participation rat
70%
For an economy as a whole, income must equal expenditure because
Every dollar of spending by some buyer is a dollar of income for some sell
Imports___________
cause foreign exchange to leave the country, and thus they are registered as credit in the balance of payments
Nominal output is measured in ________ dollars and real output is measured in ________ dollars.
current; base year
If the economy moves from point B to point A a, ________ in tax rates will ________ tax revenue.
cut; decrease
What macroeconomic condition is described in the article of a newspaper "The official data cited by Credit Libanais shows that food and clothing costs surged 190% and 172% respectively in May from a year earlier. Other reports show similar stats early this month."
hyperinflation
The domestic price of oil is $130 per barrel. If the world price of oil is $120 per barrel the country will
import 20 million barrels
Assume that the substitution effect dominates the income effect. When workers experience a positive price surprise they
incorrectly perceive that their real wage rate has risen, which leads them to work more hours.
Fiscal policies are
kess effective when the exchange rate is flexible and the economy is open.
Real business cycle theory is an attempt to explain business fluctuating under the assumptions of
market clearing and rational expectations
According to the new classical economist, under rational expectations theory, and unanticipated increase in money supply
moves the economy to Point D
A Japanese automaker produces $1 million worth of automobiles in its factory in the United States. How much of that is added to the GNP of the United States?
none
The value of the dollar relative to the euro would decrease if
the supply of the dollar increases and the demand for euros increase.
Which of these is NOT used to calculate GDP as part of the income approach?
Proprietor's Income
If an economy has a very high but declining unemployment rate and a growth rate that is barely positive, which phase of the business cycle does this best describe
Recovery
What phase of the business cycle does the headline "Consumer Confidence at Highest Level in Three Years" suggest?
Recovery
If the price of a car in the United States is 15,000, and the exchange rate between the dollar and the Japanese yen falls from 100 yen to 70 yen per dollar, then the price of the American cr in Japan will
fall
Which of the following is the largest expenditure component in an economy?
Consumption expenditure
Which of the following are generally not counted in GDP?
The production of pollution.
In the circular flow diagram
Total expenditures are equal to total receipts (payments)
Suppose in 2018 the United States had consumption worth $13 trillion, investment worth $5 trillion, and government spending worth $3 trillion, with $2 trillion in exports and $3 trillion imports. What was its GDP per capita, assuming there were 400 million residents?
USD 50,000
Inflation is defined as
an increase in the overall price level.
Which of the following would be considered a supply-side policy
decreasing taxes to increase the incentive to work
Initially trade between the US and Canada are balanced. Then a change in the exchange rate reduces the US dollar price of Canadian goods, we would expect_________
trade surplus in Canada
